The authors investigate whether civil wars have economic causes. The model is based on utility theory, rebels will conduct a civil war if the perceived benefits outweigh the costs of rebellion. Using probit and tobit models, the propositions are tested empirically. Four variables, initial...

We investigate the causes of civil war, using a new data set of wars during 1960--99. Rebellion may be explained by atypically severe grievances, such as high inequality, a lack of political rights, or ethnic and religious divisions in society. Alternatively, it might be explained by atypical...

Civil war is the most prevalent form of large-scale violence and is massively destructive to life, society, and the economy. The prevention of civil war is therefore a key priority for international attention. We present an empirical analysis of what makes countries prone to civil war. Using a...

As poor countries deplete their natural resources, for increased consumption to be sustainable some of the revenues should be invested in other public assets. Further, since such countries typically have acute shortages of public capital, the finance from resource depletion is an opportunity for...

Developing countries frequently face large adverse shocks to their economies. We study two distinct types of such shocks: large declines in the price of a country's commodity exports and severe natural disasters. Unsurprisingly, adverse shocks reduce the short-term growth of constant-price GDP...